A review of the ledger of Marin Inc. at December 31 produces the following data for the preparation of annual adjusting entries:
1. Salaries and Wages Payable, $0. There are 8 salaried employees. 5 employees receive a salary of $1,150 each per week, and 3 employees earn $690 each per week. Employees do not work weekends. All employees worked two days after the last pay period and before December 31.
2. Unearned Rent Revenue, $349,860. The company began leasing condos in its new building on November 1. Each tenant has to make a $5,340 security deposit that is not refundable until occupancy is ended. At December 31, the company had the following rental contracts that were paid in full for the entire term of the lease:
Date Term (in months) Monthly Rent Number of Leases
Nov. 1 6 $3,940 6
Dec. 1 6 $10,370 4
Prepaid Advertising, $16,560. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as follows:
Contract Date Amount Number of magazines Issues
A650 May 1 $6,960 12
B974 Oct. 1 9,600 24
The first advertisement runs in the month in which the contract is signed.
4. Notes Payable, $78,480. This balance consists of a one year, 8%, note that is dated June 1.
Required:
Marin is preparing for a meeting with potential investors. What is the net effect of the adjusting entries on net income?
Answers: 2
Other questions on the subject: Business
Business, 21.06.2019 20:20, ktenz
Miller mfg. is analyzing a proposed project. the company expects to sell 8,000 units, plus or minus 2 percent. the expected variable cost per unit is $11 and the expected fixed costs are $287,000. the fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. the depreciation expense is $68,000. the tax rate is 32 percent. the sales price is estimated at $64 a unit, plus or minus 3 percent. what is the earnings before interest and taxes under the base case scenario?
Answers: 1
Business, 22.06.2019 21:00, gd9075
Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?
Answers: 1
Business, 22.06.2019 21:00, legazzz
Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations.
Answers: 1
You know the right answer?
A review of the ledger of Marin Inc. at December 31 produces the following data for the preparation...
Questions in other subjects:
Mathematics, 17.02.2021 02:10
English, 17.02.2021 02:10
English, 17.02.2021 02:10
Mathematics, 17.02.2021 02:10
History, 17.02.2021 02:10
Mathematics, 17.02.2021 02:10
